rtside (US:PODC)2025-02-13 03:26Financial Data and Key Metrics Changes - Revenue in Q3 2025 increased by 22% to $12.7 million compared to $10.4 million in the same quarter last year [21] - Operating loss decreased to $1.6 million from $2.6 million in the same year-ago quarter, primarily due to lower non-cash stock compensation expense [21] - Net loss was $1.6 million or $0.06 per share, compared to a net loss of $2.6 million or $0.11 per share in the same quarter last year [22] - Adjusted EBITDA was negative $0.7 million, compared to negative $0.4 million in the same year-ago quarter, mainly due to timing of content acquisition costs [22] - The company ended the quarter with no debt and $0.6 million in cash and cash equivalents [23] Business Line Data and Key Metrics Changes - The majority of revenue continues to be generated via the direct sales team, with new revenue channels emerging from the partnership with Amazon's ART19 [17] - PodcastOne Pro was launched, providing customizable services and generating additional revenue from major brands like Boost Mobile and Microsoft [18] Market Data and Key Metrics Changes - PodcastOne has been ranked as a top 10 U.S. podcast publisher, with monthly unique U.S. audiences of 5.2 million and 16.2 million U.S. downloads and streams [10] - The podcast advertising market is projected to see over $2.4 billion in investments this year [9] Company Strategy and Development Direction - The partnership with Amazon's ART19 is a significant strategic move, providing operational efficiencies, enhanced analytics, and a minimum guaranteed revenue stream of $15 million over three years [30][32] - The company is actively evaluating M&A prospects to acquire top content networks and enhance its platform [34] - PodcastOne aims to diversify its revenue streams while maintaining a focus on traditional advertising, which still constitutes 90-92% of revenue [110] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 guidance, expecting revenues to be at least $51 million, representing a 17% increase from fiscal 2024 [24] - The management highlighted the growing podcast market and the increasing attention from advertisers, indicating a strengthening competitive landscape [53] Other Important Information - PodcastOne added 64 new programs in 2024 and 10 new shows in the last quarter alone, expanding its content portfolio [34] - The company is focusing on female programming and true crime shows, which are popular among audiences [98][100] Q&A Session Summary Question: Cost of sales reflecting content acquisition costs - Management indicated that the timing of revenue deals affected Q3 results, with expectations for improvement in Q4 [40] Question: G&A spending levels - Management expects G&A spending to remain consistent moving forward [42] Question: Financial benefits of working with ART19 - Benefits will be seen in operational cost efficiencies and revenue growth from the minimum guarantee payments [46][68] Question: Competitive landscape changes - Management noted increased listening and advertiser interest, with Amazon's investment in PodcastOne being a significant factor [53] Question: Revenue drivers for the quarter - Revenue was driven by ad activity, with expectations for continued growth into Q4 [60] Question: Financial impact of ART19 transition - The financial impact of the transition to ART19 is expected to begin in the current quarter [64] Question: Competitive position enhancement with ART19 - The partnership enhances the ability to forecast revenue and negotiate better deals for shows [68] Question: Response to Netflix exploring video podcasts - Management expressed excitement about Netflix's involvement in the podcasting space and the potential for future collaborations [76] Question: Current hot podcasts and upcoming shows - Management highlighted popular shows like Stassi and Vanderpump, and new launches in true crime and female programming [98][100] Question: Emerging monetization streams - Traditional advertising remains the core revenue source, but there are efforts to diversify through PodcastOne Pro and merchandise [110]